The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-06-16


competition might in some cases make out
dlssunliar circumstances and conditions,
winch would suppose a greater charge for
shorter haul, even though it might he over
the same line i'll the same direction, the
shorter being included in the larger dis
tance. The commission then reviews at
some length
THE HISTORY OF PROCEEDINGS
in Congress which resulted in the adoption
OF the fourth section as it now stands, and
comes to the conclusion THAT in the House
as well as in the Senate, it was understood
that the existence of competition was in
tended to be included in the margin of dis
cIehon provided for by the Senate measure,
ana that in finally rejecting the long and
short haul clause of the House bill, which
prescribed an infexible rule not to be de-
parted from III any case, and retaining in
substance the fourth section as it had passed
the Senate, both houses understood that
they were not adopting measure of strict
prohibition i'll respect to charging more for
shorter than for a longer distance but
that they were instead leaving the door
open for the exceptions in certain cases, and
among Others, in the cases where the cir
cumStances and conditions of traffic were
affected by the element of competition, and
where exceptions might be necessary if
competition was to be continued, and water
competition was, beyond doubt, especially
in view"
FREIGHT BURDENS PRoPoRTIoNATE
EVERY railroad company ought, when it
is practicable, to so arrange its tariff that
the burden upon freights shall be proper
tlonal on all portions Of it's line, and with
the view to a revenue sufficient to meet all
items of current expenses. including the
cost of keeping up the road buildings and
equipments, and of returning a fair profit
to the owners, but it is obvious that in some
cases, when there is water competition at
leading points, it may be impossible
to make some portion of the traffic
pay its equal proportion Of the whole cost
If it can then be made to pay anything
toward the cost above what the taking of
it would add to the expense, the railroad
ought not, in general, to be forced to reject
it, since the surplus, under such circum-
stances, would be profit
WHERE OTHER LINES ARE FREE
With regard to point second of conclusion
five, relating to competition with other rail
roads not subject to the law, the commission
says:
1.-The question whether railroad competi-
ton with other railroads which are not sub
ject to the control of this law can present
case of dissimilar circumstances and condi-
tions within the meaning of section 4, may
possibly be one of greater doubt. X \
''The competition with the Canadian
roads may present a case of dissimilar cir
cumstances, whenever such roads compete
with the United States roads for the
business between one part OF our
country, and another state of circumstances
arises as to such business which justIfies the
American roads In meeting such competi-
tions by corresponding rates, without re-
gard to the fact that in so doing the rates
between the terminals may be reduced be
low the rates to and from intermediate
places. The fact that the American roads
are left free to meet such competition, is of
itself an assurance that no extensive war of
rates is likely to be engaged in by the Cana
dian roads"
WITH NEIGHBORING ROADS.
With regard to point three of conclusion
five the commission says: THE competi-
ton with each other of the roads which are
subject to the Federal law, can seldom as
we think, make out a case of dissimilar cir
cumstances, within the meaning of the
statute, because it must seldom occur that
is would be reasonable that their competi-
tion at the points of contact should be
pressed TO the extent that would create a
disparity of rates on their lines which the
statute seeks TO prevent "Some cases, how
tftt, biit IOIhltllSSiOii 6tyS, VIII tAlob III
which, unless the force of strictly railroad
competition is allowed to create exceptions
under the statute, an existing competition
which is supposed to be Of public interest,
must come to an end, and where that is the
case strong lines will in general be the gain
ers, at the expense and something's to the
destruction of of those lines which
are weaker" With regard to
point one of conclusion six the commits
sion says: "The fact that the shorter
haul is of local traffic and the
longer is not, 1--WE cannot accept, as making
out case of dissiinilar circumstances and
conditions, within the meaning Of the
statute The claim to that effect, which
was advanced in support Of one of the ap-
pications, rests upon the theory that the
railroads are constructed for the special
accommodation of the traffic along their
lines respectively.
AN ERRONEOUS THEORY.
"But this theory has very little founda-
tion in fact. 1t is not true, as a general
rule, that the railroads are constructed in
exclusive reliance upon the local traffic; on
the contrary, the through traffic is also con
templated and is sometimes expected to
yield returns greater than the local traffic
Is likely to give, and whenever road is
with special regard to the local
that the local communities take upon
the especial burdens in aid of
the construction. When theysdo so they
NAV Justly claim that their traffic should be
favored if discrimination Is to be admitted.
There are cases, also, i'm which the roads
have been constructed with a special regard
10 the long Eauls, some Of them with the
aid of government grants, and in such cases
the theory lacks all plausibility."
COST or LOCAL TRAFFIC.
With regard to point two Of conclusion
six, the commission says that the cost to
the carrier of handling and transporting of
tho local traffic is greater than that Of the
traffic carried long distances, is fact which
may, with greater reason, when the differ
ance is considerable and clearly shown, be
claimed to make out n case Of dissmilar cir
cumstances and conditions under the stat
ute. We may well believe, there
fore, that the statute in its
against greater charge
FOR a shorter haul, did not intend
that the difference in cost should, as n gen
sraI fact be the governing consideration to
The extent that would support the greater
charge for the shorter haul, in cases in
which such greater, charge was
IN general prohibited. Where there
ire circumstances TO make the |
ihort hagll exceptionally expensive, or the |
ong haul relatively inexpensive, the diifer- |
,nce in rates may still be made within the |
imitation of the statute; but TO make out an |
exceptional case, in which the general rnle |
Il the statute may be disregarded, ON the |
yround that the circumstances are not sim |
lar, the difference in cost should itself be |
aud Ia lata ~ rarnnf araaurt-